NVIDIA’s AI Chip Market Share in China Falls to Zero, CEO Jensen Huang Says

NVIDIA CEO Jensen Huang just confirmed what Wall Street feared. Speaking with the Special Competitive Studies Project, Huang said the company's AI chip market share in China has collapsed to zero percent.

"In China, we have now dropped to zero," Huang said. Two years ago, Nvidia controlled 95% of China's AI accelerator market. Now it's gone.

Huang didn't hold back on what he thinks went wrong. "Conceding an entire market the size of China probably does not make a lot of strategic sense, so I think that has already largely backfired," he told lawmakers. "Maybe it made sense at the time, but I think the policy really needs to be dynamic and needs to stay with the times."

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TechloyDamilare Odedina

Why Nvidia China AI Market Share Collapsed to Zero

US export restrictions that started in 2022 kept tightening. On April 9, 2025, the US government told Nvidia it needed a license to export even its H20 chips to China. Those chips were specifically designed to comply with earlier restrictions.

NVIDIA took a $4.5 billion charge in Q1 fiscal 2026 tied to H20 excess inventory and purchase obligations it could no longer move.